How to have difficult conversations about money

The idea of talking about money with your friends, family or workplace might make you feel queasy. Followour guide tomake those conversations a little bit easier, leaving you with a smile on your face and maybe a fatter wallet too.Â

There are lots of reasons why you might need to talk about cash. Maybe you deserve a higher salary, but you don’t know how to ask? How do you tell your best friend you’ve spent all your dosh so can’t go out tonight? Why should you foot all the bills when your partner doesn’t pay their share?

Here are five common money scenarios and how to tackle them.

1) I’ve got a job but I need to borrow cash

We’ve all been there. You don’t want to burden your friends or family, but your paycheck won’t cover you for the next week. You need to borrow some cash.

Asking your family and friends is always the simplest way to borrow money without getting involved in high interest loans. Before you resign yourself to surviving on beans and toast, try to:

Identify the best person to ask are they in a position to lend you any money?

Explain honestly why you’re short and what the money is for.

Agree on an amount and when it needs to be paid back.

Decide what to do if you can’t pay on time.

Many young people struggle to find the courage to ask their nearest and dearest for help. Mike, 21 from London, was no different, but when he did reach out he was happily surprised by his friend’s generosity: I had to swallow my pride and accept a friend’s offer of a loan when I was struggling to make ends meet recently. I guess I realised that it was okay to accept the help they offered so lovingly and not be the strong and independent young adult all the time.

2) I don’t have enough money to go out regularly

There’s a party next Saturday, cinema night on Tuesday, and birthday drinks on Friday. But you’ve only budgeted for a week’s essentials.

It can be difficult to tell your friends you can’t afford to live it up every night. But there are ways to cut down on spending and still see your mates:

Be honest with yourself and your friends – you don’t earn enough cash to party every week.

Work out in advance how much you need to save to go out. If it’s £15, try and avoid spending money on things you don’t need such a coffee, or walk instead of taking the bus.

3) Work socialising is draining my bank account

After work drinks can make the daily grind feel worth it. But splashing out on a round of drinks for your whole team every Friday can end up being a pricey night out.

Speak to your workmates about after work socialising. Assuming they make the same amount of money as you, they might also have concerns.

Suggest cheaper ways to let off steam after work, such as playing a team sports activity in the park.

See if your employer could contribute to a monthly work social.

If these options don’t work, summon all of your strength not to get involved with rounds. Explain you need to budget and can only buy drinks for yourself.

4) How do I ask for a raise at work?

If you think you’re worth more than you’re being paid, or you’re doing work additional to your job description, you’re within your rights to ask for a raise.

Make an appointment with your boss to discuss your salary in private.

Do some research before you meet. Check online to find out average salaries for your role, and decide how much you want to ask for.

At the meeting, come armed with lots of evidence about why you deserve more, such as the benefits you bring to your employer, examples of goals that you’ve met, or times you’ve gone out of your way for your job.

Remember to ask about additional benefits if your boss can’t offer you more money, they might be able to provide something else, like training.

If your request is rejected feel free to ask why. It may be simply that your employer can’t afford it.

You could ask when your salary might be reviewed again in the future. Maybe they can offer you more in a few months time instead.

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What is Money for Life?

Money for Life is a three-year programme inspiring a generation to make the most of their money. From empowering you to feel confident and start talking openly about money to providing high-quality training and crucial support systems; Money for Life equips 16-25 year olds across the UK with the knowledge, life skills and provision needed to manage their money. The three-year programme is delivered by UK Youth and is funded by Lloyds Banking Group.